Latest Moves of Central Banks Worldwide

The Reserve Bank of New Zealand maintained its policy on interest rates but said it looked forward to more considerable decline for the kiwi.

RBNZ officials also stated the exchange rate is still baseless with reference to existing economic conditions.

The central bank of Hungary hinted at easier policy in the future after unexpected policy changes made by central banks of Switzerland, Denmark, India, and Canada during the first part of this month.

Singapore’s Monetary Authority also surprised markets by a shift in policy for slower pace in currency escalation.

This trend continues and adds more volatility to FOREX markets, according to currency strategists.

The US currency benefited from these actions as well as easy policies. In 2015, the dollar went up by almost seven percent versus euro, over seven percent against the CAD and six percent against the kiwi.

The dollar also strengthened over 20 percent against the currencies of Sweden and Norway.

Numerous economists, strategists and the Treasury market read that more risk factors indicate a higher bar for increasing interest rates.

In spite of this, the US dollar was able to get back quickly.

The Australian dollar has weakened due to decreasing prices of iron ore and crude oil. Speculators say the Reserve Bank of Australia may trim interest rates during the institution’s policy meeting next week.

Likewise, central banks of Mexico and South Africa will release their respective policy decisions on Thursday with stakeholders forecasting that the South African Reserve Bank will defer any increases.

The Mexican central bank is also expected to retain policy rates.

Analysts also believe the Bank of Korea will recommence easing in a little while and follow the worldwide trend of looser fiscal policy.